[Fiscal Year 2025 Financial Highlights](index=1&type=section&id=Fiscal%20Year%202025%20Financial%20Highlights) Fly-E Group, Inc. reported its fiscal year 2025 financial results, highlighting an improved gross margin despite a revenue decline [Announcement](index=1&type=section&id=Announcement) Fly-E Group, Inc. announced its financial results for the fiscal year ended March 31, 2025, marking a pivotal year with improved gross margin despite a revenue dip - Fly-E Group, Inc. (Nasdaq: FLYE) announced its financial results for the fiscal year ended March 31, 2025[2](index=2&type=chunk) [CEO's Strategic Overview](index=1&type=section&id=CEOs%20Strategic%20Overview) Mr. Zhou (Andy) Ou, Chairman and CEO, described fiscal year 2025 as pivotal, marked by an improved gross margin of 41.1% due to cost reductions and favorable supplier pricing, particularly for batteries - **Gross margin improved to 41.1%** in fiscal year 2025, supported by cost reductions and more favorable pricing from suppliers, especially for batteries[4](index=4&type=chunk) - The company now offers a broad product portfolio of **over 100 models** across E-motorcycles, E-bikes, and E-scooters[4](index=4&type=chunk) - Rental services are gaining traction in New York City, Toronto, and Los Angeles, with plans to expand to Miami and other markets[4](index=4&type=chunk) - Following a successful registered direct public offering in June 2025, the company is well-capitalized to invest in inventory, vehicle production, and working capital[4](index=4&type=chunk) - Future strategic focus includes improving product safety, expanding geographic reach, and investing in digital platforms like the Go Fly app[4](index=4&type=chunk) [Key Financial Summary](index=1&type=section&id=Key%20Financial%20Summary) Fiscal year 2025 saw a 21.0% decrease in net revenues to $25.4 million, leading to a net loss of $5.3 million compared to a net income of $1.9 million in the prior year Key Financial Metrics | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :--------------------- | :----------- | :----------- | :--------- | | Net Revenues | $25.4 million | $32.2 million | -21.0% | | Gross Profit | $10.5 million | $13.1 million | -20.3% | | Gross Margin | 41.1% | 40.7% | +0.4 pp | | Net Income (Loss) | $(5.3) million | $1.9 million | -378.9% | | Basic & Diluted EPS | $(1.10) | $0.43 | -355.8% | [Detailed Fiscal Year 2025 Financial Results](index=1&type=section&id=Detailed%20Fiscal%20Year%202025%20Financial%20Results) This section provides an in-depth analysis of Fly-E Group's financial performance for fiscal year 2025, covering revenues, costs, and profitability metrics [Net Revenues](index=1&type=section&id=Net%20Revenues) Net revenues for fiscal year 2025 decreased by 21.0% to $25.4 million, primarily due to a significant 10,846-unit decrease in sales volume, largely driven by reduced retail and wholesale sales Net Revenues and Sales Volume | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :------------- | :----------- | :----------- | :--------- | | Net Revenues | $25.4 million | $32.2 million | -21.0% | | Sales Volume | 58,765 units | 69,611 units | -15.6% | [Revenue Breakdown and Drivers](index=2&type=section&id=Revenue%20Breakdown%20and%20Drivers) Revenue breakdown shows declines in both retail and wholesale sales, partially offset by new rental service revenue Revenue by Type | Revenue Type | FY2025 (USD) | FY2024 (USD) | Change (%) | | :------------------ | :----------- | :----------- | :--------- | | Retail Sales Revenue | $21.7 million | $26.4 million | -17.7% | | Wholesale Revenue | $3.5 million | $5.8 million | -39.3% | | Rental Services Sales | $0.2 million | $0 million | N/A | - Decrease in retail sales revenue was mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters, leading customers to opt for oil-powered vehicles, and closures/dispositions of retail stores[7](index=7&type=chunk) - Decrease in wholesale revenue was primarily driven by the closure of stores by the top two customers in December 2023 due to lack of profitability[7](index=7&type=chunk) [Cost of Revenues](index=2&type=section&id=Cost%20of%20Revenues) Cost of revenues decreased by 21.6% to $15.0 million, primarily due to more favorable pricing from suppliers, particularly for batteries, and a reduction in sales volume Cost of Revenues and Unit Battery Cost | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :----------------- | :----------- | :----------- | :--------- | | Cost of Revenues | $15.0 million | $19.1 million | -21.6% | | Unit Cost for Battery | $99 | $112 | -11.6% | [Gross Profit](index=2&type=section&id=Gross%20Profit) Gross profit decreased by 20.3% to $10.5 million, aligning with the revenue decline, while gross margin slightly improved to 41.1% from 40.7% Gross Profit and Margin | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :------------- | :----------- | :----------- | :--------- | | Gross Profit | $10.5 million | $13.1 million | -20.3% | | Gross Margin | 41.1% | 40.7% | +0.4 pp | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses increased significantly by 52.5% to $15.0 million, driven by increases in payroll, rent, professional fees, product and software development expenses, and settlement payments Total Operating Expenses | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :----------------- | :----------- | :----------- | :--------- | | Total Operating Expenses | $15.0 million | $9.8 million | +52.5% | [Selling Expenses](index=2&type=section&id=Selling%20Expenses) Selling expenses increased by 25.4% to $7.4 million, primarily due to higher payroll and rent expenses, despite a significant decrease in commission expenses Selling Expenses Breakdown | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :----------------- | :----------- | :----------- | :--------- | | Selling Expenses | $7.4 million | $5.9 million | +25.4% | | Payroll Expenses | $3.3 million | $1.6 million | +106.3% | | Rent Expenses | $2.9 million | $2.4 million | +20.8% | | Advertising Expenses | $0.3 million | $0.06 million | +391.7% | | Commission Expenses | $9,980 | $1.1 million | -99.1% | - Increase in payroll expenses was due to more new employees hired in the first three quarters, despite headcount reduction in the last quarter from store closures[10](index=10&type=chunk) - Increase in rental expense was due to expansion of retail stores to support business growth[10](index=10&type=chunk) - Commission expenses significantly decreased due to discontinuation of marketing referral expenses as of January 1, 2024[10](index=10&type=chunk) [General and Administrative Expenses](index=3&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses surged by 94.9% to $7.6 million, driven by increased professional fees, payroll, insurance, software development, and a $1.0 million settlement payment General and Administrative Expenses Breakdown | Metric | FY2025 (USD) | FY2024 (USD) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | | General and Administrative Expenses | $7.6 million | $3.9 million | +94.9% | | Professional Fees | $2.0 million | $1.0 million | +100.0% | | Payroll Expenses | $1.5 million | $1.1 million | +36.4% | | Insurance Expenses | $1.1 million | $0.2 million | +450.0% | | Software Development Fee | $0.5 million | $0.3 million | +66.7% | | Settlement Payments | $1.0 million | N/A | N/A | - Professional fees increased due to audit, consulting, legal, and IR expenses associated with the IPO and ongoing reporting obligations[11](index=11&type=chunk) - Insurance expenses rose significantly due to increased general insurance for stores and the purchase of directors and officers liability insurance post-IPO[11](index=11&type=chunk) - A **$1.0 million settlement payment** was made to UL LLC in fiscal year 2025[11](index=11&type=chunk) [Net Income (Loss)](index=3&type=section&id=Net%20Income%20(Loss)) The company reported a net loss of $5.3 million in fiscal year 2025, a significant decline from a net income of $1.9 million in fiscal year 2024, primarily due to decreased revenues and substantially increased operating expenses Net Income (Loss) | Metric | FY2025 (USD) | FY2024 (USD) | Change (USD) | | :-------------- | :----------- | :----------- | :----------- | | Net Income (Loss) | $(5.3) million | $1.9 million | $(7.2) million | [Basic and Diluted Earnings (Losses) per Share](index=3&type=section&id=Basic%20and%20Diluted%20Earnings%20(Losses)%20per%20Share) Reflecting the net loss, basic and diluted losses per share were $1.10 in fiscal year 2025, a reversal from earnings per share of $0.43 in the previous fiscal year Basic and Diluted EPS (LPS) | Metric | FY2025 (USD) | FY2024 (USD) | | :------------------------- | :----------- | :----------- | | Basic and Diluted EPS (LPS) | $(1.10) | $0.43 | [EBITDA (Non-GAAP)](index=3&type=section&id=EBITDA%20(Non-GAAP)) EBITDA shifted from a positive $3.5 million in fiscal year 2024 to a negative $3.9 million in fiscal year 2025, indicating a significant decline in operational profitability before non-operating items EBITDA | Metric | FY2025 (USD) | FY2024 (USD) | Change (USD) | | :----- | :----------- | :----------- | :----------- | | EBITDA | $(3.9) million | $3.5 million | $(7.4) million | [Financial Condition](index=3&type=section&id=Financial%20Condition) This section details Fly-E Group's financial position, including cash balances and cash flow activities for the fiscal year 2025 [Cash and Cash Flows](index=3&type=section&id=Cash%20and%20Cash%20Flows) As of March 31, 2025, cash decreased to $0.8 million from $1.4 million, with operating activities consuming $10.1 million, investing activities using $2.9 million, and financing activities providing $12.5 million Cash and Cash Flow Summary | Metric | FY2025 (USD) | FY2024 (USD) | | :----------------------------------- | :----------- | :----------- | | Cash (as of March 31) | $0.8 million | $1.4 million | | Net cash (used in) provided by operating activities | $(10.1) million | $4.3 million | | Net cash used in investing activities | $(2.9) million | $(3.2) million | | Net cash provided by (used in) financing activities | $12.5 million | $(0.05) million | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section provides essential information about Fly-E Group, including its business, non-GAAP financial measures, forward-looking statements, and investor contacts [About Fly-E Group, Inc.](index=4&type=section&id=About%20Fly-E%20Group,%20Inc.) Fly-E Group, Inc. is an electric vehicle company focused on designing, installing, selling, and renting smart electric motorcycles, bikes, and scooters under the 'Fly E-Bike' brand - Fly-E Group, Inc. is an electric vehicle company engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters under the 'Fly E-Bike' brand[17](index=17&type=chunk) - The company's mission is to encourage eco-friendly transportation and contribute to a more environmentally friendly future[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses EBITDA as a non-GAAP financial measure to supplement U.S. GAAP results, providing additional insight into operating performance by excluding interest, taxes, depreciation, and amortization - The Company uses EBITDA (earnings before interest, taxes, depreciation, and amortization) as a non-GAAP financial measure[19](index=19&type=chunk) - EBITDA provides additional insight into underlying operating performance and facilitates year-to-year comparisons by excluding the earnings impact of interest, tax, depreciation, and amortization[19](index=19&type=chunk) - Non-GAAP measures should be viewed in addition to, not as an alternative to, U.S. GAAP measures[18](index=18&type=chunk) [Definition and Rationale for EBITDA](index=4&type=section&id=Definition%20and%20Rationale%20for%20EBITDA) EBITDA is reconciled to net income, the most directly comparable U.S. GAAP measure, and is believed to highlight business trends not apparent from U.S. GAAP alone - EBITDA is reconciled to net income, the most directly comparable U.S. GAAP measure, and includes adjustments for income taxes, interest income/expense, depreciation, and amortization[20](index=20&type=chunk) - The company believes EBITDA highlights business trends not apparent from U.S. GAAP alone and eliminates items less bearing on operating performance[20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements based on current expectations, which involve known and unknown risks and uncertainties, with actual results potentially differing materially from anticipated outcomes - Forward-looking statements involve known and unknown risks and uncertainties, based on current expectations about future events[21](index=21&type=chunk) - Actual results may differ materially from anticipated results, and investors are referred to the 'Risk Factors' section of the company's Form 10-K[21](index=21&type=chunk) - The company undertakes no obligation to update or revise publicly any forward-looking statements, except as required by law[21](index=21&type=chunk) [Investor and Media Inquiries](index=5&type=section&id=Investor%20and%20Media%20Inquiries) Contact information is provided for investor and media inquiries, including direct company investor relations and an external investor relations firm - Contact information for investor and media inquiries is provided for Fly-E Group, Inc. Investor Relations Department and Ascent Investor Relations LLC[22](index=22&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents Fly-E Group's consolidated financial statements, including balance sheets, statements of operations, cash flows, and EBITDA reconciliation [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $33.7 million from $29.0 million, driven by higher current assets and property and equipment, while total liabilities also rose to $23.9 million Consolidated Balance Sheet Summary | Metric (USD) | March 31, 2025 | March 31, 2024 | | :------------------------------- | :------------- | :------------- | | **ASSETS** | | |\ | Cash | $840,102 | $1,403,514 |\ | Accounts receivable | $466,187 | $212,804 |\ | Inventories, net | $6,397,274 | $5,364,060 |\ | Prepayments and other receivables | $3,676,986 | $588,660 |\ | Assets held for sale | $2,462,502 | — |\ | Total Current Assets | $14,000,516 | $8,136,208 |\ | Property and equipment, net | $7,287,213 | $1,755,022 |\ | Operating lease right-of-use assets | $10,933,068 | $16,000,742 |\ | Total Assets | $33,706,675 | $28,976,334 |\ | **LIABILITIES** | | |\ | Accounts payable | $1,272,305 | $1,180,796 |\ | Short-term loan payables | $5,191,058 | — |\ | Total Current Liabilities | $12,701,375 | $7,794,816 |\ | Total Liabilities | $23,873,343 | $22,194,512 |\ | **STOCKHOLDERS' EQUITY** | | |\ | Total Stockholders' Equity | $9,833,332 | $6,781,822 | [Consolidated Statements of Operations and Comprehensive (Loss) Income](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) The consolidated statement of operations shows a shift from a net income of $1.9 million in FY2024 to a net loss of $5.3 million in FY2025, driven by decreased revenues and increased operating expenses Consolidated Statements of Operations Summary | Metric (USD) | FY2025 | FY2024 | | :------------------------------- | :------------- | :------------- | | Revenues | $25,427,163 | $32,205,666 |\ | Cost of Revenues | $14,976,266 | $19,099,120 |\ | Gross Profit | $10,450,897 | $13,106,546 |\ | Selling Expenses | $7,403,374 | $5,914,786 |\ | General and Administrative Expenses | $7,607,489 | $3,931,203 |\ | Total Operating Expenses | $15,010,863 | $9,845,989 |\ | Income (Loss) from Operations | $(4,559,966) | $3,260,557 |\ | Net Income (Loss) | $(5,291,159) | $1,895,222 |\ | Earnings (Losses) per Share | $(1.10) | $0.43 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities shifted from a positive $4.3 million in FY2024 to a negative $10.1 million in FY2025, while financing activities provided $12.5 million, primarily from common stock issuance Consolidated Statements of Cash Flows Summary | Metric (USD) | FY2025 | FY2024 | | :----------------------------------------- | :------------- | :------------- | | Net cash (used in) provided by operating activities | $(10,059,466) | $4,308,920 |\ | Net cash used in investing activities | $(2,901,272) | $(3,200,843) |\ | Net cash provided by (used in) financing activities | $12,486,104 | $(49,628) |\ | Cash at beginning of the year | $1,403,514 | $358,894 |\ | Cash at the end of the year | $840,102 | $1,403,514 | - Net proceeds from issuance of common stock (IPO) contributed **$9,154,500** to financing activities in FY2025[29](index=29&type=chunk) [Supplemental Non-Cash Activities](index=9&type=section&id=Supplemental%20Non-Cash%20Activities) The company disclosed several non-cash investing and financing activities, including significant purchases of vehicles and offices funded by loans, and the use of previous prepayments for software and property Supplemental Non-Cash Activities Summary | Non-Cash Activity | FY2025 (USD) | FY2024 (USD) | | :-------------------------------------------------- | :----------- | :----------- | | Purchase of vehicle funded by loan | $224,638 | $34,974 |\ | Purchase of office funded by loan | $1,800,000 | — |\ | Purchase software and office by using previous prepayments | $1,729,000 | — |\ | Right-of-use assets obtained in exchange for operating lease liabilities | $2,490,547 | $10,771,688 | [EBITDA Reconciliation](index=10&type=section&id=EBITDA%20Reconciliation) The reconciliation shows EBITDA moving from a positive $3.5 million in FY2024 to a negative $3.9 million in FY2025, a 209.9% decrease, driven by the shift from operating income to loss and increased expenses EBITDA Reconciliation Summary | Metric (USD) | FY2025 | FY2024 | Change (USD) | Percentage Change | | :------------------------ | :------------- | :------------- | :------------- | :---------------- | | (Loss) Income from Operations | $(5,291,159) | $1,895,222 | $(7,186,381) | (379.2)% |\ | Income Tax provision | $336,166 | $1,182,933 | $(846,767) | (71.6)% |\ | Depreciation | $631,280 | $272,708 | $358,572 | 131.5% |\ | Interest Expenses | $405,615 | $152,050 | $253,565 | 166.8% |\ | Amortization | $65,091 | $1,648 | $63,443 | 3849.7% |\ | EBITDA | $(3,853,007) | $3,504,561 | $(7,357,568) | (209.9)% |\ | Percentage of Revenue | (15.2)% | 10.9% | | (26.1)% |

Financial Performance - Fly-E Group, Inc. reported net revenues of $25.4 million for fiscal year 2025, a decrease of 21.0% from $32.2 million in fiscal year 2024, primarily due to a reduction in sales volume by 10,846 units [4][5] - Retail sales revenue was $21.7 million, down 17.7% from $26.4 million in fiscal year 2024, while wholesale revenue decreased by 39.3% to $3.5 million [5] - The company experienced a net loss of $5.3 million in fiscal year 2025, compared to a net income of $1.9 million in fiscal year 2024, with basic and diluted losses per share of $1.10 [8][12][11] Cost and Profitability - Cost of revenues decreased to $15.0 million, down 21.6% from $19.1 million in fiscal year 2024, attributed to favorable pricing from suppliers and reduced sales volume [6] - Gross profit was $10.5 million, a decrease of 20.3% from $13.1 million in fiscal year 2024, with a gross margin of 41.1%, slightly up from 40.7% in the previous year [9][8] Operating Expenses - Operating expenses increased by 52.5% to $15.0 million, driven by higher payroll, rent, professional fees, and product development costs [10] - Selling expenses rose to $7.4 million, while general and administrative expenses increased to $7.6 million, reflecting the company's expansion efforts and increased operational costs [15] Cash Flow and Financial Condition - As of March 31, 2025, the company had cash of $0.8 million, down from $1.4 million a year earlier, with net cash used in operating activities amounting to $10.1 million [14] - Net cash provided by financing activities was $12.5 million, compared to a slight outflow of $0.05 million in fiscal year 2024, indicating improved capital raising efforts [16] Strategic Outlook - The company aims to enhance product safety, expand geographic reach, and invest in digital platforms to improve customer experience, following a successful public offering in June 2025 [3] - Fly-E has diversified its product portfolio to over 100 models and is expanding its rental services, which are currently operational in major cities like New York, Toronto, and Los Angeles [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________ to___________ Commission file number 001-42122 | Fly-E Group, Inc. | | | --- | --- | | (Exact name of registrant as specified in its charter) | | | Delawar ...

Core Viewpoint - Fly-E Group, Inc. will implement a reverse stock split on a one-for-five basis to increase the market price per share and maintain its Nasdaq listing [1][4]. Group 1: Reverse Stock Split Details - The reverse stock split has been approved by the Company's stockholders and Board of Directors [2]. - Each five pre-split shares will automatically combine into one post-split share, with no change in par value [3]. - The number of issued and outstanding shares will decrease from 53,183,053 to approximately 10,636,611 [4]. Group 2: Purpose and Impact - The reverse stock split aims to increase the market price per share to attract institutional and other investors [4]. - Adjustments will be made to the exercise price and the number of shares issuable upon the exercise of outstanding warrants [3].

Group 1 - American Trust Investment Services, Inc. (ATIS) is acting as the exclusive placement agent for Fly-E Group Inc. in its follow-on public offering [1][5] - The offering includes 28,595,553 shares of common stock and 57,191,106 warrants, with a public offering price of $0.2428 per share, aiming for gross proceeds of approximately $6.94 million [2] - Fly-E Group Inc. specializes in electric vehicles, focusing on smart electric motorcycles, e-bikes, scooters, and related accessories, and operates over 30 retail stores in the U.S. [3] Group 2 - The net proceeds from the offering will be allocated for inventory purchases, vehicle production, and general corporate purposes [4] - ATIS emphasizes its commitment to supporting high-growth companies like Fly-E, aiming to enhance their market leadership in sustainable mobility [5] - ATIS is recognized for providing tailored capital markets solutions and has a strong track record in guiding businesses through complex financial transactions [6]

Core Viewpoint - Fly-E Group, Inc. has successfully closed a public offering of 28,595,553 shares of common stock and 57,191,106 warrants, raising approximately $6.94 million in gross proceeds, which will be used for inventory purchases, production costs, and working capital [1][2]. Group 1: Offering Details - The public offering price was set at $0.2428 per share, with each share sold together with two warrants, each exercisable at an exercise price of $0.2913 [1][2]. - The offering closed on June 4, 2025, and the warrants are exercisable immediately, expiring on the fifth anniversary of the issuance date [1][2]. Group 2: Use of Proceeds - The net proceeds from the offering will be allocated towards purchasing inventory, covering production costs of vehicles, and supporting working capital needs [2]. Group 3: Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters under the brand "Fly E-Bike," promoting eco-friendly transportation [5].

Core Viewpoint - Fly-E Group, Inc. has announced a public offering of 28,595,553 shares of common stock and 57,191,106 warrants at a price of $0.2428 per share, aiming to raise approximately $6.94 million for inventory and production costs [1][2]. Group 1: Offering Details - The public offering includes common stock sold with two warrants per share, with each warrant exercisable at an exercise price of $0.2913 [1]. - The offering is expected to close on or about June 3, 2025, pending customary closing conditions [2]. - The gross proceeds from the offering are anticipated to be around $6.94 million before deducting fees and expenses [2]. Group 2: Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters under the brand "Fly E-Bike" [6]. - The company's mission is to promote eco-friendly transportation and contribute to a more sustainable future [6]. Group 3: Regulatory Information - The securities are being offered under a registration statement on Form S-1, which was declared effective by the SEC on May 15, 2025 [4]. - A final prospectus will be filed with the SEC and will be available on their website [4].

Group 1 - Fly-E Group, Inc. is participating in the D. Boral Capital Inaugural Global Conference on May 14, 2025, in New York City to engage with investors [1][2] - The conference will feature approximately seventy-five presenting companies and hundreds of institutional investors, providing a platform for interaction in a high-energy environment [3] - Fly-E Group focuses on eco-friendly transportation solutions, offering smart electric motorcycles, electric bikes, and electric scooters under the brand "Fly E-Bike" [4]

Financial Performance - Net revenues for Q3 FY2025 were $5.7 million, a decrease of 23.6% from $7.4 million in Q3 FY2024, primarily due to a reduction in sales volume by 3,511 units[4]. - For the nine months ended December 31, 2024, net revenues were $20.4 million, a decrease of 15.2% from $24.0 million for the same period last year[14]. - Retail sales revenue for the nine months ended December 31, 2024, was $17.7 million, down 7.9% from $19.2 million in the same period last year[15]. - For the three months ended December 31, 2024, revenues were $5,678,010, a decrease of 23.6% compared to $7,428,212 for the same period in 2023[39]. Profitability - The company reported a net loss of $0.7 million, or $0.03 per share, in Q3 FY2025, compared to a net income of $20,889, or $0.001 per share, in Q3 FY2024[11][12]. - The company experienced a net loss of $2.0 million for the nine months ended December 31, 2024, compared to a net income of $1.2 million for the same period last year[20]. - The company reported a net loss of $684,487 for the three months ended December 31, 2024, compared to a net income of $20,889 for the same period in 2023[39]. - For the nine months ended December 31, 2024, the company reported a net loss of $2,006,843 compared to a net income of $1,207,888 in the same period of 2023, representing a decline of 266.1%[43]. Expenses - Total operating expenses increased by 26.0% to $3.5 million in Q3 FY2025, compared to $2.8 million in Q3 FY2024, driven by higher payroll, rent, and advertising expenses[9]. - The company’s operating expenses for the three months ended December 31, 2024, were $3,501,349, up from $2,778,824 in the same period in 2023, marking an increase of 26.0%[39]. - The cost of revenues for the nine months ended December 31, 2024, was $11.8 million, a decrease of 19.0% from $14.6 million for the same period last year[16]. - The company experienced a significant increase in depreciation expense, which rose to $310,910 for the nine months ended December 31, 2024, up 52.6% from $203,788 in 2023[45]. - The company reported a substantial increase in interest expenses, which reached $247,550 for the nine months ended December 31, 2024, a rise of 201.3% from $82,150 in 2023[45]. Cash Flow and Assets - Cash and cash equivalents decreased slightly to $1,367,248 as of December 31, 2024, from $1,403,514 as of March 31, 2024[36]. - Cash at the end of the period was $1,367,248, a decrease from $1,173,228 at the end of the same period in 2023[43]. - Cash flows from operating activities showed a net cash used of $(9,413,989) for the nine months ended December 31, 2024, compared to a net cash provided of $1,743,987 in 2023[43]. - Net cash provided by financing activities was $12,233,936 for the nine months ended December 31, 2024, a significant increase from $30,550 in 2023[43]. - The company reported a net cash used in investing activities of $(2,836,671) for the nine months ended December 31, 2024, compared to $(963,304) in 2023[43]. Balance Sheet - Total current assets increased to $12,844,667 as of December 31, 2024, from $8,136,208 as of March 31, 2024, representing a growth of 58.5%[36]. - Total liabilities rose to $24,114,347 as of December 31, 2024, compared to $22,194,512 as of March 31, 2024, indicating an increase of 8.7%[36]. Strategic Initiatives - The company plans to expand its product portfolio and enhance brand influence through international trade shows and strategic partnerships[3]. - In January 2025, the NYC Department of Transportation launched a $2 million trade-in program, with the Fly-11 PRO selected as the official model[26]. Other Financial Metrics - EBITDA is used as a key performance measure, providing insight into the company's operating performance by excluding interest, taxes, depreciation, and amortization[29]. - EBITDA for the nine months ended December 31, 2024, was $(1,939,206), a decrease of $4,165,029 or 187.1% compared to $2,225,823 in 2023[45]. - The company recognized a deferred IPO cost of $502,198 as additional paid-in capital during the reporting period[44]. - The company expects to continue facing challenges in the upcoming quarters, with actual results potentially differing from forward-looking statements due to various risks and uncertainties[32].

Core Viewpoint - Fly-E Group, Inc. reported a significant decline in net revenues and net income for the third quarter and nine months of fiscal year 2025, primarily due to decreased sales volume and consumer sentiment affected by recent battery accidents [2][3][12]. Financial Results Summary Third Quarter Financial Results - Net revenues were $5.7 million, a decrease of 23.6% from $7.4 million in the same period last year [3][7]. - Retail sales revenue was $4.9 million, down 21.9% from $6.3 million year-over-year [4]. - Wholesale revenue was $0.7 million, compared to $1.1 million in the same period last year [4]. - Rental services revenue was $48,961, with no revenue generated in the same quarter last year [4]. - Cost of revenues was $3.1 million, a decrease of 30.0% from $4.5 million year-over-year [5]. - Gross profit was $2.6 million, down 13.9% from $3.0 million in the same period last year, with a gross margin of 45.1%, up from 39.0% [6][7]. - Total operating expenses were $3.5 million, an increase of 26.0% from $2.8 million year-over-year [8]. - Net loss was $0.7 million, or $0.03 per share, compared to net income of $20,889, or $0.001 per share, in the same period last year [9][10]. Nine Months Ended December 31, 2024 Financial Results - Net revenues were $20.4 million, a decrease of 15.2% from $24.0 million in the same period last year [12]. - Retail sales revenue was $17.7 million, down 7.9% from $19.2 million year-over-year [13]. - Wholesale revenue was $2.6 million, a decrease of 45.5% from $4.8 million in the same period last year [13]. - Cost of revenues was $11.8 million, a decrease of 19.0% from $14.6 million year-over-year [16]. - Gross profit was $8.6 million, down 9.4% from $9.5 million in the same period last year, with a gross margin of 42.0%, up from 39.3% [17]. - Total operating expenses were $10.8 million, an increase of 45.5% from $7.4 million year-over-year [18]. - Net loss was $2.0 million, compared to net income of $1.2 million in the same period last year [19]. - Basic and diluted losses per share were $0.08, compared to earnings per share of $0.05 for the same period last year [21]. Business Update - Fly-E's Fly-11 PRO was selected as the official model for the New York City Department of Transportation's $2 million Trade-In Program, aimed at promoting safer e-mobility solutions [2][25]. - The company is focusing on innovation and diversification to drive long-term growth, including expanding its product portfolio and enhancing digital marketing efforts [2]. Financial Condition - As of December 31, 2024, the company had cash of $1.4 million, with net cash used in operating activities amounting to $9.4 million for the nine months ended December 31, 2024 [23]. - Net cash provided by financing activities was $12.2 million for the nine months ended December 31, 2024, compared to $30,550 for the same period last year [24]. EBITDA Analysis - EBITDA was negative $0.8 million for the third quarter of fiscal year 2025, compared to positive EBITDA of $0.2 million in the same period last year [11][39]. - For the nine months ended December 31, 2024, EBITDA was negative $1.9 million, compared to positive EBITDA of $2.2 million for the same period last year [22][39].